Vodafone Idea’s chairman Kumar Mangalam Birla advocates for higher mobile plans to support network upgrades and secure the company’s financial future amid sector-wide pressure to improve returns on 5G investments.
Vodafone Idea is again preparing investors and customers for the possibility of pricier mobile plans, with chairman Kumar Mangalam Birla arguing that periodic tariff increases are necessary if India’s telecom operators are to keep funding new networks and future technologies. In a message to shareholders, Birla said average revenue per user in India remains among the lowest in the world, leaving the sector little room to absorb the cost of upgrades without charging more.
The comments land as Vodafone Idea seeks lender support for a Rs 45,000 crore capital spending plan covering FY27 to FY29. The money would be used to widen 4G coverage, speed up 5G rollout and improve service quality at a time when the company is under pressure to stabilise its balance sheet and compete more effectively with larger rivals.
Birla has made a similar case before. In 2020, he said tariff increases were essential for the telecom industry’s long-term growth, arguing that prices remained too low even after an earlier round of hikes. More recently, in June 2026, he said Vodafone Idea had passed through one of its hardest periods and was now concentrating on its turnaround, while also describing the company as being at an inflection point.
That turnaround effort has included major financial and legal milestones. In January 2026, Birla called the resolution of the adjusted gross revenue dispute a turning point for the company, and in May he returned as Vodafone Idea’s non-executive chairman. Industry reports have also suggested that Reliance Jio, Bharti Airtel and Vodafone Idea may be preparing tariff increases of about 12% to 15% over the next few months, reflecting a broader push across the sector to improve returns on heavy 5G investment. Vodafone Idea reported average revenue per user of Rs 190 for the March 2026 quarter, underscoring why the company and its peers are pressing for higher pricing.
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